He trained as a pilot after joining the RAF Volunteer Reserve and joined No. 610 Squadron RAF. He then joined No. 616 Squadron RAF as a sergeant pilot in January 1941 based at RAF Tangmere. He was under the command of Wing Commander Douglas Bader who selected him as his wingman in which role he was described as “leech-like", and "a perfect number two".[2] Two further well-known individuals made up Bader's section of four aircraft during this period: Johnnie Johnson and 'Cocky' Dundas.[3] His appointment as wing man followed Douglas Bader's entry into the dispersal hut when he was told "Right you'll do. God help you if you let any Hun get on my tail". The section operated under the callsign 'Dogsbody' which originated from Douglas Bader's initials: "DB". Three of the four (Bader, Dundas and Smith) went on to receive knighthoods and all four survived the war. On 9 August 1941 Smith had a head cold and hence was grounded on medical orders.[4] As he was about to be commissioned he headed to London to be fitted for his new uniform.[5] He was therefore unavailable to fly and protect his CO's tail and Bader was shot down and spent the remainder of the war as a PoW.

On 4 November 1941, the then Pilot Officer Alan Smith, Royal Air Force Volunteer Reserve, No. 616 Squadron is awarded the Distinguished Flying Cross in recognition of gallantry displayed in flying operations against the enemy:

Throughout the 44 operational sorties in which, he has participated, this officer has shown the greatest keenness to 'engage the enemy and has destroyed at least four of their aircraft. In combat, he has been of great support to his leader on numerous occasions

On 16 February 1943, Flight Lieutenant Alan Smith DFC, Royal Air Force Reserve, No. 93 Squadron is awarded a Bar to the Distinguished Flying Cross in recognition of gallantry displayed in flying operations against the enemy:

During the campaign in North Africa, Flight Lieutenant Smith has destroyed 4 enemy aircraft. His great skill, and fine example have inspired the formation he leads.

On 1 January 1976, as chairman of Dawson International, he was appointed a Commander of the Order of the British Empire (CBE) in the new year honours.[10] On 12 June 1982, he was appointed a Knight Batchelor as chairman and chief executive of Dawson International in the Queen's Birthday Honours.[11]